Bitcoin-Gold Correlation Hits Six-Year High, Bitwise Says

Bitwise said Bitcoin's correlation with gold has risen to a six-year high, while its correlation with stocks has fallen to a one-year low, suggesting a partial decoupling between hard assets and equities. According to ChainCatcher, Bitwise Europe research head André Dragosch said the last time the two assets reached this level was in 2020, during a period of repeated fiscal and monetary stimulus after the COVID-19 outbreak. The report said the move in Bitcoin and gold reflects what it described as substantial U.S. government intervention in the macro backdrop. It cited the U.S. Treasury's decision last month to more than double the size of government debt buybacks, which weakened the dollar and drew investors back into gold and Bitcoin. It also noted that U.S. public debt surpassed $40 trillion for the first time in the same week, further weighing on confidence in the dollar. Bitwise said investors are no longer debating whether to use gold or Bitcoin to hedge currency debasement, but are holding both. The firm added that Bitcoin was priced as a risk asset for its first 15 years and said the next 15 years could look very different if the correlation trend continues. Bitcoin rose nearly 6% over the past 24 hours and briefly approached $81,438 this week.